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Wisconsin Northwoods Freight Rail Market Study Page 2 of 60 A study of freight movement Wisconsin Northwoods in counties near the US 8 highway corridor Freight Rail Market Study and of the potential for the region to increase its rail shipments September 2013 PICTURE PICTURE Authors Liat Bonneville Tom Frackleton Dennis Leong David Leucinger Tonia Rice Kathleen Spencer Dan Thyes Wisconsin Northwoods Freight Rail Market Study Page 2 of 60 Table of Contents Acknowledgements ............................................................................................................................ 5 Executive Summary ........................................................................................................................... 7 Chapter 1: Introduction .................................................................................................................... 18 Chapter 2: Wisconsin’s Current Freight Rail Network ...................................................................... 19 Wisconsin’s Changing Economy and Infrastructure Needs ............................................ 23 Environmental and Economic Benefits of Using Rail ..................................................... 24 Chapter 3: History of Rail in Wisconsin ........................................................................................... 26 History of Rail in Northern Wisconsin: A Summary ....................................................... 27 Chapter 4: Rail Transit Commissions and Rail Preservation ........................................................... 33 Wisconsin Rail Assistance Programs ............................................................................ 36 Chapter 5: Northern Wisconsin Study Area Profile .......................................................................... 37 County Freight Profiles .................................................................................................. 39 Identifying Rail Freight Stations ..................................................................................... 41 Chapter 6: Surveying Northwoods Businesses ................................................................................ 43 Northwoods Rail Transit Commission Membership ....................................................... 45 Survey Methodology: Development of the Mailing List ................................................. 47 Summary of Survey Results .......................................................................................... 48 Chapter 7: Recommendations and Suggested Next Steps .............................................................. 55 Related Web Sites ........................................................................................................................... 57 Glossary........................................................................................................................................... 58 Appendix 1: History of Rail in Northern Wisconsin ...................................................................... A1-1 Appendix 2: County Freight Profiles ............................................................................................ A2-1 Appendix 3: County Profiles ........................................................................................................ A3-1 Appendix 4: Instructions for Using the FRA’s Freight Station Mapping Tool ................................ A4-1 Appendix 5: Complete Survey Results – Rail Users .................................................................... A5-1 Appendix 6: Complete Survey Results – Businesses That Do Not Use Rail ................................ A6-1 Notes ........................................................................................................................................... N1-1 Wisconsin Northwoods Freight Rail Market Study Page 3 of 60 Tables Table 1: Statewide Freight Profile ................................................................................................... 19 Table 2: Top Wisconsin Commodities by Weight, Transported by Rail ............................................ 20 Table 3: Top Wisconsin Commodities by Value, Transported by Rail .............................................. 20 Table 4: Wisconsin Rail Transit Commissions ................................................................................. 34 Figures Figure 1: Wisconsin Railroad System .............................................................................................. 21 Figure 2: Wisconsin Rail Operation Status ...................................................................................... 22 Figure 3: Wisconsin Rail Transit Commissions ................................................................................ 35 Figure 4: Study Area ....................................................................................................................... 37 Figure 5: Locations of Businesses That Responded to the Survey .................................................. 48 Figure 6: Potential Use of Reactivated Rail Lines by Current Rail Users ......................................... 50 Figure 7: Potential Use of Reactivated Rail Lines by Businesses Not Currently Using Rail ............. 52 Figure 8: Location of Potential New Rail Users, If Lines Were Reactivated ..................................... 53 Wisconsin Northwoods Freight Rail Market Study Page 4 of 60 Acknowledgements This report is a product of the combined efforts of the Wisconsin Department of Transportation (WisDOT) and the Northwoods Rail Transit Commission (NRTC). WisDOT is grateful to the NRTC members and the economic development professionals from Barron, Florence, Forest, Langlade, Lincoln, Marinette, Oneida, Price, Rusk and Vilas counties for helping to develop and promote the business survey that serves as the foundation of this study. We also extend our thanks to the many businesses that chose to participate in the survey by providing us with their essential input and information for this research project. Wisconsin Northwoods Freight Rail Market Study Page 5 of 60 Wisconsin Northwoods Freight Rail Market Study Page 6 of 60 Executive Summary This report was produced in response to an initiative that came out of Wisconsin’s first Governor’s Freight Industry Summit in November 2011. The event sought to obtain feedback from manufacturers and shippers from around the state, as to what they felt were their “most pressing freight transportation challenges.” One of the problems that many participants identified was inadequate rail service in northern Wisconsin. Several segments of a rail line that stretches across northern Wisconsin – from the Minnesota border in the west to the Michigan border in the east – have had their service discontinued over the last 25 years. The majority of the deactivations occurred after 2001. The reduction in service left many counties with fewer options for shipping by rail; one county lost its rail access entirely. To address this, WisDOT proposed a study of the area to begin the process of determining whether this trend could be reversed. Within the time period that this report was being developed (2012 – 2013), two inactive sections of the rail corridor being studied were put back into service. The rail segment between Poskin (in Barron County) and Ladysmith (in Rusk County) is now active. However, about half of the entire corridor remains without service. As a first step in understanding the issues, WisDOT conducted a survey of businesses in the region to get a sense for what the current level of freight rail use was, and what the potential might be if the network regained its connectivity. The survey was offered to businesses within (and in some cases, near) 10 counties that are located along the rail corridor that roughly parallels US 8. Conducted in November/December 2012, the survey was reviewed and promoted by the newly-created Northwoods Rail Transit Commission, an organization formed to support rail service in northern Wisconsin and Michigan’s Upper Peninsula. This report provides the results of that survey. In addition, a significant part of this study is devoted to examinations of the region’s commodity flows and freight profiles. Also included are discussions of Wisconsin’s rail transit commissions, rail history, and funding sources for rail development and preservation. Technical information about freight stations and the tools to locate them is provided as well. Rounding out the report are sections on the benefits of rail transportation, recent trends affecting rail use, and suggestions for planning for the future of freight rail in northern Wisconsin. Wisconsin Northwoods Freight Rail Market Study Page 7 of 60 Wisconsin’s Rail History Since 1847, railroads have played a key role in Wisconsin’s transportation system and economy. The state’s railroad network reached its height in 1920, at about 7,600 miles. However, the next decade saw rail abandonments begin to surpass new construction. Fifty years later, rail’s future remained uncertain. Railroad companies across the country faced multiple challenges that were to take a toll: competition from other modes of transport, increased government regulation, and a recession, among others. Railroad bankruptcies and abandonments were frequent contributors to the industry’s instability in the 1970s. Wisconsin’s own rail history is interwoven with mergers, sell-offs and bankruptcies that occurred regularly. Communities that sought to preserve rail service were aided in their efforts by several federal and state reform measures.
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